At a recent forum, Wambui Mbarire, CEO of the Retail Trade Association of Kenya (Retrak), raised a key question regarding the true target market for Kenyan exports. She emphasized that when local goods are exported, they are often aimed at Kenyan communities abroad, but the reality is that the products don’t always appeal to foreign consumers.
Mbarire pointed to the example of Choco Primo, a local product by Trufoods Ltd, compared to Cadbury, a product from a multinational company. She argued that Kenyans living in foreign markets are more likely to purchase the local product than foreigners.
She also referenced Tuskys, a now-defunct Kenyan retail giant, whose founder once aimed to expand into Nigeria or Ethiopia, with the goal of supplying Kenyan goods to Kenyan expatriates and introducing them to local consumers, which would potentially boost demand. However, Tuskys collapsed after the founder’s death.
Mbarire advocated for a strategy that focuses on Kenyans abroad to help boost demand for local products. By doing so, Kenyan products could be promoted and circulated in international markets through diaspora communities, eventually reaching a larger market.
She also highlighted the struggles of many Kenyans abroad to find familiar Kenyan products or similar substitutes, with social media groups reflecting this challenge, such as one where Kenyans in the US inquire about finding sausages similar to those from Kenya’s Farmers Choice.
Kenya has made strides in boosting its export economy, with the 2024 Economic Survey showing a 15.4% increase in export earnings in 2023. Major exports include tea, coffee, horticultural products, and cement. Despite these gains, the government acknowledges the need for a stronger manufacturing sector to meet rising demand, targeting a manufacturing output increase from 7.3% to 20% of GDP by 2030.
The government continues to negotiate access to international markets, but concerns remain about the competitiveness of Kenyan products, particularly within markets like the European Union. The challenge is to not only increase exports but also ensure that the products meet international standards to make a meaningful impact in these markets.
